Indonesia Power Market Size (2024 - 2029)

The Indonesia Power Market is anticipated to experience growth in its installed base over the forecast period, driven by the expansion of renewable energy power plants and advancements in the transmission and distribution sectors. Despite challenges posed by local opposition to conventional thermal power plants due to environmental concerns, the market is poised for opportunities as the Indonesian Government's commitment to achieving net-zero emissions by 2060 encourages development in power generation and distribution.

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Market Size of Indonesia Power Industry

Indonesia Power Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR (2024 - 2029) 4.61 %
Market Concentration Medium

Major Players

Indonesia Power Market Major Players

*Disclaimer: Major Players sorted in no particular order

Indonesia Power Market Analysis

The Indonesia Power Market size in terms of installed base is expected to grow from 86.83 gigawatt in 2024 to 108.79 gigawatt by 2029, at a CAGR of 4.61% during the forecast period (2024-2029).

  • Over the medium term, factors such as increasing renewable energy power plants and increasing work in the transmission and distribution sectors are likely to drive the market.
  • On the other hand, high levels of rebellion from the people living near new conventional thermal power plants due to pollution are expected to slow down the Indonesian power market.
  • Nevertheless, the Indonesian Government has set a target to achieve net-zero emissions by 2060, which will present significant opportunities to players involved in the power generation as well as transmission and distribution sectors in the market.

Indonesia Power Industry Segmentation

Power generation is the generation of electricity through various primary sources such as coal, hydro, solar, thermal, etc. In utilities, it's a step prior to its delivery to end users. The process is followed by transmission and distribution. Under this, the power generated is distributed via high-voltage lines (transmission lines) and low-voltage lines (distribution lines) as per the requirements of the end user.

Indonesia's power market is segmented by power generation source, power transmission and distribution. By power generation source, the market is segmented into oil and natural gas, coal, and renewables. For each segment, market sizing and forecasts have been done based on installed capacity in gigawatts (GW).

Power Generation Source
Oil and Natural Gas
Coal
Hydroelectricity
Renewables
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Indonesia Power Market Size Summary

The Indonesian power market is poised for growth, driven by an increasing focus on renewable energy and advancements in transmission and distribution infrastructure. Despite the country's heavy reliance on coal-based power generation, which currently dominates the electricity mix, the government is setting ambitious targets to transition towards cleaner energy sources. This shift is aligned with Indonesia's commitment to achieving net-zero emissions by 2060, creating opportunities for market players in both power generation and distribution sectors. However, the construction of new conventional thermal power plants faces challenges due to local opposition over pollution concerns, potentially slowing market expansion.

Renewable energy is gaining traction in Indonesia, with significant investments in hydropower, geothermal, and solar PV projects. The government aims to increase the share of renewables in the energy mix, with substantial potential in hydropower and geothermal resources. Solar PV systems are becoming increasingly popular due to their competitive pricing and ease of installation. Strategic partnerships and projects, such as those involving Beiersdorf AG and TotalEnergies SE, are expected to drive the market forward. Key players like PT Perusahaan Listrik Negara are actively pursuing collaborations and technological advancements to enhance their renewable energy capacity, maintaining a strong market position amidst a moderately consolidated industry landscape.

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Indonesia Power Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Installed Power Capacity and Forecast in GW, till 2028

    3. 1.3 Electricity Generation and Forecasts in TWh, till 2028

    4. 1.4 Recent Trends and Developments

    5. 1.5 Government Policies and Regulations

    6. 1.6 Market Dynamics

      1. 1.6.1 Drivers

      2. 1.6.2 Restraints

    7. 1.7 Supply Chain Analysis

    8. 1.8 PESTLE Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 Power Generation Source

      1. 2.1.1 Oil and Natural Gas

      2. 2.1.2 Coal

      3. 2.1.3 Hydroelectricity

      4. 2.1.4 Renewables

    2. 2.2 Power Transmission and Distribution

Indonesia Power Market Size FAQs

The Indonesia Power Market size is expected to reach 86.83 gigawatt in 2024 and grow at a CAGR of 4.61% to reach 108.79 gigawatt by 2029.

In 2024, the Indonesia Power Market size is expected to reach 86.83 gigawatt.

Indonesia Power Market Report Snapshots

Indonesia Power Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)